Mediaboss Marketing

This Quarterly Report on Form 10-Q contains statements that may constitute"forward-looking statements" within the meaning of Section 27A of the SecuritiesAct of 1933, as amended (the "Securities Act"), and Section 21E of theSecurities Exchange Act of 1934, as amended (the "Exchange Act"), that involvesubstantial risks and uncertainties. All statements contained in this QuarterlyReport on Form 10-Q other than statements of historical fact, includingstatements regarding our future results of operations and financial position,our business strategy and plans, and our objectives for future operations, areforward-looking statements. The words "believes," "expects," "intends,""estimates," "projects," "anticipates," "will," "plan," "may," "should," orsimilar language are intended to identify forward-looking statements.It is routine for our internal projections and expectations to change throughoutthe year, and any forward-looking statements based upon these projections orexpectations may change prior to the end of the next quarter or year. Readers ofthis Quarterly Report on Form 10-Q are cautioned not to place undue reliance onany such forward-looking statements. As a result of a number of known andunknown risks and uncertainties, our actual results or performance may bematerially different from those expressed or implied by these forward-lookingstatements. Risks and uncertainties are identified under "Risk Factors" inItem 1A herein and in our other filings with the Securities and ExchangeCommission (the "SEC"). All forward-looking statements included herein are madeonly as of the date hereof. Unless otherwise required by law, we do notundertake, and specifically disclaim, any obligation to update anyforward-looking statement, whether as a result of new information, futureevents, or otherwise after the date of such statement.You should read the following discussion and analysis of our financial conditionand results of operations together with our unaudited condensed consolidatedfinancial statements and related notes included elsewhere in this QuarterlyReport on Form 10-Q, and our audited consolidated financial statements andrelated notes for the year ended December 31, 2021, filed with the SEC onMarch 28, 2022. Unless the context otherwise requires, the terms "IonQ," "LegacyIonQ" "we," "us," "our" and similar terms refer to IonQ Quantum, Inc. prior tothe consummation of the Business Combination and IonQ, Inc. and its wholly ownedsubsidiaries after the consummation of the Business Combination. References to"dMY" refer to the predecessor company prior to the consummation of the BusinessCombination.OverviewWe are developing quantum computers designed to solve the world's most complexproblems, and transform business, society, and the planet for the better. Webelieve that our proprietary technology, our architecture, and the technologyexclusively available to us through license agreements will offer us advantagesboth in terms of research and development, as well as the commercial value ofour intended product offerings. We sell access to quantum computers, and we arein the process of researching and developing technologies for quantum computerswith increasing computational capabilities. We currently make access to ourquantum computers available via three major cloud platforms, Amazon WebServices' (AWS) Amazon Braket, Microsoft's Azure Quantum, and Google's CloudMarketplace, and to select customers via our own cloud service.We are still in the early stages of generating revenue. We have incurredsignificant operating losses since our inception. Our net losses were $5.9million for the six months ended June 30, 2022, and we expect to continue toincur significant losses for the foreseeable future. As of June 30, 2022, we hadan accumulated deficit of $151.7 million. We expect to continue to incur lossesfor the foreseeable future as we prioritize reaching the technical milestonesnecessary to achieve increasingly higher number of stable qubits and higherlevels of fidelity than that which presently exists- prerequisites for quantumcomputing to reach broad quantum advantage.

The Merger Agreement and Public Company Costs

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Business and Technical Highlights

IonQ announced a paid contract with Airbus, who is using Aria to explore

critical aviation variables that make this problem particularly difficult

IonQ announced a paid contract with Dow, a global leader in chemistry and

material science, who is using Aria to explore the boundaries of quantum

computing in materials discovery research. They join other customers who

are partnering with IonQ to explore the intersection of quantum machine

IonQ announced the results of a partnership with GE Research to develop a

quantum algorithm that manages financial risk exposure. The work used a

large data set to generate risk models across up to four variables and is

broadly applicable to industries which have risk-management needs, such

computer in the world with 23 algorithmic qubits, which will be available

tomorrow to all users of Microsoft Azure Quantum. This announcement

IonQ signed a formal agreement to collaborate with the University of

Maryland on a project for the National Science Foundation. For this, IonQ

IonQ finalized a subcontract with Zapata Computing to collaborate on a

offering, representing more than a 130,000x increase in computational

IonQ announced an 8x increase in the computation power of IonQ Harmony,

which has achieved up to #AQ 9, up from a previous benchmark of #AQ 6.

Harmony systems are available to customers via all three major cloud

partners, including Microsoft Azure, Amazon Web Services, and Google

processing, or NLP. IonQ created quantum NLP algorithms to represent

linguistic qualities like ambiguity, vagueness, and novelty which are

notoriously difficult to represent in classical compute. No previously

published work has demonstrated ambiguity resolution or language

generation working on live quantum hardware. IonQ believes quantum

techniques of this nature can dramatically improve NLP performance.

IonQ has identified a facility in Seattle, Washington to host its first

after serving as Vice President of Systems Engineering at PsiQuantum and

IonQ welcomed Kathy Chou to the IonQ Board of Directors in July 2022. Ms.

Chou is currently the Senior Vice President of SaaS Engineering at

Nutanix, and brings a wealth of experience in go-to-market strategy and

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Impact of COVID-19 on Our Business

Key Components of Results of Operations

Revenue

We are currently focused on marketing our QCaaS and have entered into, and arecontinuing to enter into, new contracts with customers.

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Research and development

General and administrative

General and administrative expenses consist of personnel-related expenses,including salaries, benefits and stock-based compensation, and allocatedfacility and other costs for our corporate, executive, finance, and otheradministrative functions. General and administrative expenses also includeexpenses for outside professional services, including legal, auditing andaccounting services, recruitment expenses, information technology, travelexpenses and certain non-income taxes, insurance, and other administrativeexpenses.

Depreciation and amortization

Depreciation and amortization expense results from depreciation and amortizationof our property and equipment and intangible assets that is recognized overtheir estimated lives.

Nonoperating Costs and Expenses

Change in fair value of warrant liabilities

Interest income, net

Interest income, net consists of income earned on our money market funds andother available-for-sale investments.

Other income (expense), net

Other income (expense), net consists of realized losses on ouravailable-for-sale investments and certain other expenses.

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Results of Operations

41,771 17,544

(1) Cost of revenue, research and development, sales and marketing, and general

Comparison of the Three Months Ended June 30, 2022 and 2021

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Research and development expenses increased by $4.2 million, or 76%, to$9.7 million for the three months ended June 30, 2022, from $5.5 million for thethree months ended June 30, 2021. The increase was primarily driven by a$2.5 million increase in payroll-related expenses, including stock-basedcompensation of $1.7 million, as a result of increased headcount, and a$1.5 million increase in materials, supplies and equipment costs.

Sales and marketing

Depreciation and amortization

Depreciation and amortization $ 1,451 $ 502 $ 949 189 %

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Change in fair value of warrant liabilities

Change in fair value of warrant liabilities $ 16,061 $

Comparison of the Six Months Ended June 30, 2022 and 2021

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Depreciation and amortization

Depreciation and amortization $ 2,717 $ 947 $ 1,770

187 %

Change in fair value of warrant liabilities

Change in fair value of warrant liabilities $ 29,509 $ - $ 29,509

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Interest income, net increased by $1.9 million to $1.9 million for the sixmonths ended June 30, 2022, from zero for the six months ended June 30, 2021.The increase was primarily driven by interest income earned on our cashequivalents and available-for-sale investments.

Liquidity and Capital Resources

Future Funding Requirements

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Cash flows

The following table summarizes our cash flows for the period indicated:

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Net cash provided by financing activities during the six months ended June 30,2021, was $5.4 million primarily resulting from proceeds from stock optionsexercised.

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Critical Accounting Estimates

There have been no material changes to our critical accounting estimates fromthose described under "Management's Discussion and Analysis of FinancialCondition and Results of Operations" in our Annual Report.

Recently Issued and Adopted Accounting Standards

See Note 2, Summary of Significant Accounting Policies, in the notes to ourcondensed consolidated financial statements included in Part I, Item I of thisQuarterly Report on Form 10-Q for a discussion of recent accountingpronouncements.

Emerging Growth Company and Smaller Reporting Company Status

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Edgar Online, source Glimpses

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IONQ, INC. Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) - Marketscreener.com